Growth in Japan's factory output likely accelerated in January and core inflation hovered near five-year highs, a Reuters poll showed, underscoring the ongoing economic recovery despite fears that momentum may soon start to fade.
Retail sales probably increased while job conditions held firm, in a sign that an improving labor market and firm demand are driving private consumption, which accounts for 60% of the economy.
The slew of indicators, all due next Friday, come on the heels of data earlier this week that showed weaker-than-expected fourth quarter growth due to disappointing exports, capital spending and private consumption.
Weak readings could heighten market expectations that further stimulus will need to be rolled out by the government and the Bank of Japan, which remain upbeat on the economy despite worries about the potential blow from a planned sales tax hike in April and weak demand from emerging economies.
A separate Reuters poll this week showed the BOJ is expected to ease policy further by this summer to help boost the economy as the effects from Prime Minister Shinzo Abe's stimulus strategy begin to wane.
Japan's industrial output, which closely correlates with economic cycle, rose 3% in January from the previous month, following a 0.9% gain in December, according to the median estimate of 29 economists.
That would be the fastest growth since last July as companies are expected to ramp up production of cars and non-durables to meet rising demand before the tax hike.
The spurt in demand probably helped boost retail sales by 3.8% in January from a year ago, which would mark a sixth straight month of annual gains, the Reuters poll showed.
The poll also showed Japan's core consumer price index (CPI), which excludes fresh food prices but includes oil products, rose 1.2% year-on-year in January, easing from 1.3% in December -- the fastest in more than five years.
The central bank maintained its massive monetary stimulus at this week's policy review, aiming to meet a 2% price goal around early 2015, which is seen by many analysts as a tall order.
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